Does Perkins Loan Count towards Aggregate Limit for Graduate Students?

Paying for College
1

Hello,
I’m on the first year of my PhD and I don’t think I’ll hit my aggregate loan limit of $138,500, but the financial aid people think if I take four years to do my PhD that I might hit it. So, I asked them if my Perkins loan which I took out as an undergrad counted towards that limit, and they said it didn’t to the best of their knowledge, but they’re British, (I attend a university in the UK), and so they said they never really deal with Perkins loans.

Does anyone here know? Are Perkins loans factored into the $138,500 limit for sub/unsub loans for graduate students?

2

No, Perkins loans are not included in the aggregate loan limit for grad students (which includes all undergrad sub/unsub and all grad unsub). In addition, grad students can borrow Graduate PLUS loans, which have no cap (but involve a credit check).

Warning: Perkins loans are not included in income-driven repayment plans. If you want to include them, you need to consolidate them into a Direct Loan.

3

Thanks so much for clarifying. It’s greatly appreciated!
Two follow up questions:

First, does the aggregate loan limit include interest accrued?

Second, this FAQ from the Federal Aid website [ link: https://ifap.ed.gov/dlbulletins/attachments/DLB0703Attach.pdf ] says, under the question “Am I eligible for a Direct PLUS Loan if I have reached the $138,500 Direct Subsidized/Unsubsidized Loan aggregate loan limit for graduate/professional students?” the following:

“Yes. However, if you have exceeded the $138,500 aggregate, you must either repay the excess loan amount or make satisfactory arrangements to repay it before you can receive any additional Federal Student Aid, including Direct PLUS Loans.”

Now, let’s say I reach the aggregate limit. How on earth would I go over that limit? Is that where interest is a factor, i.e, once you hit the aggregate limit, you must pay off the interest before you can receive Grad PLUS loans?

4

The loan limit is the loan amount (principal), not including interest. I’ll let someone else answer how you might go over that.

5

The aggregate limit does not include interest accrued.

It is possible to go over the limit, although it is not supposed to happen. There are a number of reasons it can happen, but it is not all that common. You don’t need to worry about this, but know that if it were to occur, it is relatively simple to fix (usually, you just have to complete a form called a reaffirmation agreement).